Ask Question
BusinessBusiness
21 April, 17:56

On July 1, 2019, Cullumber Company pays $12,000 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Cullumber Company, journalize and post the entry on July 1 and the annual adjusting entry on December 31. For Blossom Company, journalize and post the entry on July 1 and the annual adjusting entry on December 31.

+5
Answers (1)
  1. 21 April, 18:04
    0
    On July 1, 2019, Cullumber Company pays $12,000 to Kalter Insurance Co. for a 3-year insurance contract.

    For Cullumber Company:

    July 1 Debit:Prepaid Insur $12000

    Credit: Bank. $12,000

    Being payment for prepaid Insurance.

    Dec 31. Credit:prepaid insur $2,000

    Debit:Insurance exp $2,000

    Being insurance expenses for the year.

    For Blossom Company:

    July 1 Credit:Unearned Revenue $12000

    Debit: Bank. $12,000

    Being unearned revenue on Insurance.

    Dec 31. Debit:unearned revenue $2,000

    Credit: Revenue $2,000

    Being insurance revenue for the year.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On July 1, 2019, Cullumber Company pays $12,000 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Kinsey has a plan to save $60 a month for 16 months so that she can purchase a new television. After 11 months Kinsey has saved $600. If the most that Kinsey can possibly save is $80 per month, which of the following statements is true? a.
Answers (1)
When Sara was recognized by the store manager at a store meeting for exceeding all of her past year's objectives and when the announcement of her promotion to assistant store manager was made, which need of hers was filled? a. safety b.
Answers (1)
Which of the following is NOT an assumption that economists make when developing a production possibilities frontier (PPF) ? a. We live in a world with only two goods. b. There are no increases in technology c.
Answers (1)
Mr. T is considering a strategy to defer $10,000 income for five years with no significant opportunity cost. Discuss the strategic implications of the following independent assumptions: a. Mr. T is age 24.
Answers (1)
Reviewing research and making connections
Answers (1)
New Questions in Business
The debit side of an account a. depends on whether the account is an asset, liability, or owner's equity b. is the left side of the account c. can be either side of the account depending on how the accountant set up the system d.
Answers (1)
Universal Containers (UC) has a desktop application to collect leads for marketing campaigns. UC wants to extend this application to integrate with Salesforce to create leads.
Answers (1)
MetaProMetaPro Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $ 140$140 for each connector and fixed costs of $ 5 comma 500$5,500 per month.
Answers (1)
The National Highway Traffic Safety Administration (NHTSA) is responsible for all of the following except: A. establishing safety regulations for auto manufacturers B. constructing new highways C. enforcing automobile recalls D.
Answers (1)
Suppose that 1983 is the base year for the consumer price index (cpi) and in 2014 the cpi was 220. what does this "220" mean?
Answers (1)
Home » Business » On July 1, 2019, Cullumber Company pays $12,000 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31.
Sign Up Forgot Password?